Dana Reports Lower Second-Quarter 2014 Results
July 24, 2014
Dana's booth at the Technology & Maintenance Council meeting earlier this year.
Dana Holding Corp. saw sales and net income fall in the second quarter compared to a year ago, as stronger production levels in the North American light- and commercial-vehicle markets were tempered by slowing demand in South America and India.
Sales for the quarter were $1.71 billion, compared with $1.80 billion for the same period in 2013. Net income for the quarter was $86 million, compared with $92 million for the same period in 2013.
The effects of weaker currencies, principally in South America and Asia, lowered sales by about $28 million. Weak off-highway market demand, which accelerated in the latter part of 2013, extended into the current quarter.
Dana generated strong free cash flow of $133 million in the quarter, compared with $160 million in 2013.
Dana officials says that despite the challenging economic environment in some of its markets, second-quarter results came in as the conpany had expected, and it is still on track to deliver its top- and bottom-line targets for the fiscal year. The company says it will "continue to focus on disciplined cost and investment actions to improve margin performance, as well as our product technology and growth strategy that is positioning us well for the future."
In the Commercial Vehicle Driveline Technologies business unit, sales were $463 million in the second quarter of 2014, down from $498 million last year. Improved end-market demand in North America was offset by declines in South America, primarily in Brazil.